Leased Building (156-8XXX) Expenses Allocated Using SAP

The expenses associated with leased buildings (156-8XXX) are allocated to building occupants using SAP. For those personnel who monitor financial statements, there are several issues they should be aware:

Allocations are based on assigned square feet. Cost Allocation and Analysis will review assigned square feet for lease buildings, using Plant Accounting space assignments in the STAR system, on a quarterly basis. All updates to square feet for lease buildings should be in Plant Accounting before the end of every fiscal quarter (September 28, December 28, March 28, and June 30), to ensure accurate space charges on the general ledger.

The budgeted allocated expenses for lease buildings is posted on the general ledger under the cost element 900900, actual expense will be posted to the cost element 900971.